Mumbai: Backed by a surging demand and expectations of a robust festive season, prices of gold rallied for the second straight day, reclaiming the significant Rs 29,000 landmark - its highest level in 20 months.
A global market selloff in the midst of uncertain macroeconomic environment and highly volatile currency made a perfect blended cocktail for a strong incremental advance for the yellow metal amid heavy speculative buyout.
Expectations of high festive and wedding related demand for gold in coming months also supported the rally, a bullion trader said.
Elsewhere, silver also strengthened further owing to sustained industrial and jewellery offtake.
Standard gold (99.5 purity) climbed by Rs 275 to conclude at Rs 29,110 per 10 grams from Thursday's closing level of Rs 28,835.
Similarly, pure gold (99.9 purity) also jumped by a similar margin to end at Rs 29,260 per 10 grams as against Rs 28,985.
Silver (.999 fineness) rose by Rs 175 to finish at Rs 38,175 from Rs 38,000 yesterday.
In the meantime, gold retreated modestly in worldwide trade after a massive overnight upsurge, as investors took profit ahead of the key US retail sales data and also before the weekend.
The shiny-metal galloped more than USD 60 or almost 5 per cent to fresh one-year highs at USD 1263.36 an ounce on Thursday following heightened risk-aversion buying against the backdrop of collapsing global equity market amid fears over a new era of negative interest rates policy.
Spot was trading marginally weak at USD 1,237.20 an ounce in early European session, while silver quoted little changed at USD 15.64 an ounce.
(With PTI inputs)
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